Structure defines the formal relationship and usage of people to accomplish all of an organization’s activities (5). Mercedes Benz is well-organized when it comes down to making sure all organizational activities and jobs are accomplished. It follows a matrix structure, which is a connection of one type of organization to another so that two chains of command are directing individual employees. Figure 1.1.shows the main operating companies and how their structure works. The reason why they follow this structure is because they require large numbers of technical people with different skills to work in projects as a team. Mercedes works as a pyramid with top managers on top, middle managers, human resources, finances, marketing, sales etc. Every department has specific jobs and task to follow, Corporate Communications/Public Relations job is to manage public relations and internal communications to retailers, to foster a positive news-media environment for MBUSA, Mercedes Benz, smart USA and Sprinter products, and smart USA and Sprinter retailers, by cultivating relationships with key stakeholders and maintaining a positive media image. In the customer service department Whenever Mercedes Benz owners are in need, customer service is there, 24 hours a day and seven days a week, to answer their questions, provide solutions to problems, and offer technical and roadside assistance. Their employees are trained professionals who also support the dealer network by helping them
In a business, there are a majority of structures that are organised in a business for their employees. An example of a business that has structured their employees is Asda, which was structured their business in a hierarchical structure.
A structure depends on the organization 's objectives and strategy. In a very centralized structure, the highest layer of management has most of the choice creating power and has tight management over departments and divisions. In a much suburbanized structure, the choice creating power is distributed and also the departments and divisions could have totally different degrees of independence. Wal-mart’s structure is built upon its risk management, safety and claims management process. Google Inc. has gained much attention and acclaim for its unusual organizational culture, which is designed to establish loyalty and creativity. Although both Google and Wal-mart focuses on risk management and they specialized on two different factors. Google focus more on creativity, loyalty and keeping its employees happy. Wal-mart tends to help customers by saving money, claims and promoting within the company.
Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery
Organizational structure is a system used to define a hierarchy within an organization which improves operational efficiency by providing clarity to employees at all levels of a company. A systematically outlined structure can also provide direction for internal promotions, allowing companies to create employee advancement routes for entry-level workers. In other words, it identifies each job, its function and where it reports to within the organization. Harley-Davidson’s organizational structure, for example, assists centralized control of the business through the company’s arrangement of its components in terms of their interactions and functions. As one of the world’s oldest motorcycle manufacturers in the world, Harley-Davidson Inc. maintains this organizational structure and centers its current focus on a limited number of markets. While the business continues to grow by international expansion, Harley-Davidson’s corporate structure focuses mainly on the fact that most of the company’s revenues are generated in the United States. Thus, Harley-Davidson has a functional organizational structure that is based on the company’s current focus on the motorcycle markets in developed countries, especially the United States, in addition to ensuring centralized control of business activities. The basic characteristics of Harley-Davidson’s organizational structure include Function based groups, Centralization, and Global hierarchy.
IDENTIFY AND REVIEW THE RELEVANT RANGE OF OPERATIONS AND THE SPHERE OF BUSINESS ARRANGEMENTS OF THE ORGANISATION
Structure is the basis through which an organization seeks to create control the direction of an organization. This is completed through clear definitions of the allocation of work, differentiation, and the coordination of having those responsibilities working together towards the efforts of the organization, integration (Bolman & Deal, 1993, pp). Through these methods, the organization is able to devise a division of labor that collaborates to bring about the missions and goals of an organization. The structure that comes about from this can be varied in their rigidness and flexibility it allows, and to an extent this is a great contribution to its success.
In their organizing tasks they have to build a structure of working relationships between all of the members in the organization, that best allows them to work together and attain goals.
16. Zara’s store managers place orders that reflect their localized needs. However, order fulfillment is ultimately the responsibility of the commercial team in headquarters because:
Holden company is a worldwide producer and wholesaler of engine vehicle, motors, accessories and parts. Company and GM all inclusive, seeing Australia as configuration focus of magnificence and a critical springboard into the developing Asian markets.In spite of their Australian market victories, Company understood that to finish on the worldwide sytage they have to move to a higher plane of initiative and coordinated effort. Basically, Company wished to have an extraordinary official group, with astounding individual abilities additionally the systems to draw in viably as a group, to acknowledge vital business goals.
According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the
Effective organizational structures define how job tasks are subdivided, grouped, coordinated, and managed. Six key components of organizational structures include division of labor, departmentalization, chain of command, span of control, centralization, and formalization (Remme, Jones, Van der Heijden, & De Bono, 2008, p. 79). Each element influence how employees interact with each other to reach organizational goals. Different structures are common in similar organizations among high performing organizations (Reimann, 1974, p. 707). The most appropriate structure will depend on the unique needs and culture of the organization.
Companies go across borders in search of new market opportunities and in turn, have to focus on increased productivity as competition intensifies. Organization structure and job design are carefully selected by managers to ensure that work are coordinated well with less hurdles to achieve the established goals in the planning process (Wren, 2001). In the Autodesk’s Sales department, the structure is similar to a family tree where the Sales Managers coordinates the works of the Resellers and report to the Sales Director who is in-charge of the department.
Aside from educating a manager through formal training in managing an organization through change, there are many ongoing activities that will increase a manager's awareness and aid them in supporting a more complex organizational structure as it develops. A company's organizational structure is a road map of its communication patterns. A well-designed structure can also make it easier to identify inefficiencies and new problems as the organization grows. Reviewing the organizational structure on a regular basis will help ensure that the organization set up for optimal growth well into
Manager’s of an organization has to use structure to help the company run efficiently. “The five types of organizational structures are functional, divisional, matrix, team-based, and virtual network” (Draft, 2013, p.316). Functional structure in an organization that is developed by grouping departments by the skills, level of knowledge, activities done daily, and the resource used. “This structure places specific departments from the bottom to the top” (Draft, 2013, p.318). For example, specific departments such as: human resources, accounting, engineering, and manufacturing are placed at the top, while there are mostly seen at the bottom in other organizations. While common functions such as; people, facilities, and other resources are combined together as a single department instead of being divided into multiple departments.
At least two different organizational structures are identified, described, and compared in terms of their design principles.